The Harry Hines Medical Center (HHMC) is classified as a large urban hospital by Medicare with an area wage index of 1.0810 and the National Average Standardized Amounts used by Medicare to calculate reimbursement for DRGs are given as follows:

Classification Labor Nonlabor

Large Urban $2,500 $1,100

Other 2,250 1,050

DRG 419 (Laparoscopic Cholecystectomy W/O CC/MCC) has a DRG weight of 1.2619 and a mean LOS (length of stay) of 3.0 days.

Suppose the Hospital DRG Rate (in the previous question) was $3,000. How much reimbursement would HHMC receive for a case classified into DRG 419?

$11,357

$3,786

$3,600

$1,262